BUL's inactivity is their strategy. They always have said that and will continue to do so. ( Slide 20 )
1. They accumulate high value gas acreage which will get de-risked every time a neighbour increases its value as gas is mostly evenly distributed over huge areas here in QLD
2. They aim for JV partners to pay for any exploration or production
3. Using 1 and 2 they aim for a high priced takeover by anyone who hopes to make a fortune by jumping on the LNG gas supply train
As long as there is a gas supply shortage in the air - and it seems there will be a major one once Gladstone is running at full capacity - 1 -3 as a strategy will pay off.
From the last preso :
Contigent resource : 3501 PJ = 3501000000 GJ
1 GJ currently AUD 8
Using just 1 % as undeveloped inground value ( 3% is standard ) we can value BUL at 3.5 x 10^9 GJ x $ 8 x 1 % = $ 28 x 10^7 = $ 280m / about 1.2b shares = 23 -24c per share
That's why I got back in as the Shell / Arrow sell - if they really sell it - won't have an impact on the gas situation. I thought it would but the current deals everywhere proved me wrong.
From the current sp level it should be a 5 bagger just to get to fair value.
BUL Price at posting:
4.9¢ Sentiment: LT Buy Disclosure: Held
